With property prices and mortgage rates still low across the US, and inventories high, it’s a good time to be searching for a fixer-upper. By purchasing a home that is in need of some repairs, you can obtain your dream home for less than you would quite possibly pay for a move-in-ready home.
To make certain you’re maximizing your investment, however, it pays to have a look at your credit before you buy and commence your remodel. You’ll not only want credit to pay for the purchase price of the house, but you will need it for improvement costs as well.
The first step you ought to take in your bid to purchase a fixer-upper is to look at your credit report and score. Web sites like creditreport.com can help you understand your credit. Understanding your credit will help you know whether or not you can afford to buy a home that requires repair work and if you will be able to afford the required repairs.
You should also thoroughly research what your choices are for financing your remodel. Find out what your options are, from conventional fixed mortgages to home equity lines of credit, and determine before you purchase which form of financing will be wise for you. Getting a handle on your financing before you buy can help make sure you remain on budget when you’re in the midst of renovations.
When you have got a crystal clear understanding your credit condition and funding alternatives, you can begin checking out fixer-uppers. When you discover a good prospect, have your remodeling contractor check out the house with you so he can give you a rough estimate of what should be done and how much the project will cost.
If you’re acquiring a property that’s in generally good condition but just appears dated, you will need to make a few decisions about where to spend your money. Emphasize improvements that will not only look good, but will also boost the value of your house. Resources like Remodeling Magazine’s Cost vs. Value report can give you a decent idea of how much of your initial investment you’ll make back on different remodeling projects at the time of resale.
Once you’ve signed all the paperwork and the home is yours, it’s time to get to work. If you’re handy, you may have the chance to save money by doing some of the remodelling work yourself. Projects like painting, adding crown molding and even installing new flooring are well within the abilities of the majority of do-it-yourselfers. More complicated projects like drywall, plumbing or electrical work may be best left to professionals.
Whether you do the work yourself, or hire contractors, you’ll will need to properly manage all aspects of the remodeling to guarantee your remodel remains on budget. The fun of remodeling a house into your dream home can make it very easy to get carried away on spending. Remember that remodeling estimates are just that– an estimate. The final price is rarely exactly what your contractor anticipated it would be. Build in at the very least 10 percent extra to cover emergency overruns, and avoid making any needless changes to the plans while the renovation is in progress.